Is the Bloom Off Dividend-Rich MLPs?

Neuberger Berman's Doug Rachlin discusses the November selloff in master limited partnerships and where the opportunities remain in the sector.

Investors in master limited partnerships endured some heavy selling pressure in November fueled by post-election jitters about the fiscal cliff and the expectation of rising tax rates on income investments.

MLPs typically own oil-and-gas infrastructure like pipelines and processing. And while these partnerships pass on a majority of cash flow as tax-deferred distributions that attract long-term income investors, the tax burden still looms large. In the first two weeks of November, the benchmark Alerian MLP Index lost more...